Strata Reserve Planning is assisting the University of BC (Real Estate Division, Sauder School of Business) with new valuation theory for Depreciation Reports (Reserve Studies).
Based on the concept of Reserve Adequacy (the universally accepted benchmarking tool for Depreciation Reports), Jeremy Bramwell AACI, P.App., RI has created the method of determining when the sales price of a Strata Lot (Residential or Commercial) needs a discount due to the Contingency Reserve Fund (CRF), and how much the discount should be, if at all.
Reserve Adequacy is complex specific, taking into account the maintenance of the building in the past and the needs of the future. The ratio changes over time, and provides a performance measurement tool for the Owners, the Council and the Property Manager. It allows the creation of a long term plan to strengthen the CRF and lessen the need for special levies over time.
This method was reviewed by CHOA, the largest condominium homeowners association in BC, as well as the Ministry of Housing (Deputy Minister Housing Policy), where comments were absorbed into the theory.
We are also the only Depreciation Report firm to be invited in to speak to the Canadian Housing & Mortgage Corporation (CHMC) on Depreciation Reports financial analysis.
This is the beginning of a consistent financial analysis method as UBC Real Estate Division (Sauder School of Business, University of British Columbia) provides all distance education material for Realtors and Property Managers in BC and Appraisers in Canada.
Strata Reserve Planning is proud that UBC Real Estate Division asked us to contribute to the body of knowledge in Appraisal Theory and Market Value through the development of the Reserve Adequacy ratio in Depreciation Reports (Reserve Studies). And we can bring this to you.